Singapore is The Best Place For Company Incorporation
Top Reasons for Singapore Being the Best Place for Company Incorporation
Singapore, a country in Asia, has been a business hub for many years. It occupies an important position in the global economy. The main reasons for choosing Singapore as a business hub are its stable political situation, business policies, skilled taskforce, infrastructures, and many more. Many global businesses are keen to keep their business headquarters in Singapore. It is the best place for company incorporation for foreigners due to its strong trade and investment, and for some degree, the use of English as the main business language. Many international business owners consider Singapore as the perfect place to flourish their business. They also use Singapore as a platform to get into other emerging markets in Asia.
Singapore is a unique combination of Asian, American, and the European cultures and system. The city-state has a close resemblance to the UK and USA’s financial and legal structures. It is preferably considered as an ideal place to open the branch office by many financial institutions, global banks, multinational organizations. Singapore’s currency is one of the strongest currencies in the world. This is why Singapore is the best place for company incorporation. In this article, we will discuss the following topics.
Comparison of Singapore With Other Countries for the Requirement to Set Up the Business
Selecting a perfect place to set up a business plays a crucial role in its success. In this section, we will discuss the difference in the requirements to set up business in Singapore and China.
In Singapore, overseas investors can set up a private limited company with 100% overseas shareholding. They can engage in whatever business they want. In China, a foreign businessperson can open a Wholly Foreign-Owned Enterprise that can only engage in the encouraging fields of business activity but not in a restricted field.
To set up a company in Singapore, the minimum requirements are a local residential or commercial address, one local resident director, a qualified legal and local resident secretary, 1-50 shareholders, and a minimum capital of 1 SGD. In China, minimum requirements are a local registered commercial address, one director, either Chinese or foreign(3-13 directors are needed if the company forms a Board of directors), 1 Chinese or foreign representative, 1-50 shareholders, a General manager, and supervisor( either Chinese or foreign) and capital of CNY 100,000-1,000,000.
Company Incorporation Process
The company registration process just takes one day in Singapore via computerized means. The process to register a company in Singapore include getting a company name approval and filing registration documents. Furthermore, the company needs to apply for the business license and open a corporate bank account. It also needs to register with the Singapore’s tax department.
In China, the company registration process is long and tedious. The company needs to submit a business proposal, obtain the company name approval, present a feasibility report, file the registration documents, and obtain a business license. After registration, the company needs to open a corporate bank account, register with the tax department and statistical and financial bureau, and get a foreign exchange registration certificate. It takes about 2-3 months to get approvals.
Annual Report Presentation
An annual income tax return should be filed to the Singapore tax department each year, and an annual return has to be filed with the Company registrar. Small companies in Singapore don’t need to file audited reports with the returns. In China, companies have to submit audited reports with the tax returns monthly, quarterly, and annually to the tax department.
In Singapore, tax rate for income upto S$300k is 8.5%, and for-profit exceeding S$300k tax rate is 17%. The Goods and Service Tax (GST) in Singapore is 7%. On the other hand, in China, the corporate tax rate is 25%. For certain small companies, it is 20%, and for some technology companies, it is 15%. For companies whose turnover exceeds CNY 1.8 million, VAT is 17%, and for other companies, the Value Added Tax is 6%.
Singapore offers companies a lower tax rate, minimal registration time, minimal legal requirements, which are the main reasons to start up a business in Singapore than in China.
Benefits Of Choosing 3E Accounting Company To Set Up Business In Singapore
3E Accounting Pte Ltd is the leading corporate service provider in Singapore. It is the best company registration service provider that offers the best value for company registration in Singapore. 3E Accounting provides a team of qualified professionals required to help you register a company in Singapore easily. It assures you of a quick and thorough company registration complying with Singapore’s existing laws and regulations.
You can go through the video about incorporation services in Singapore, where you will know about detailed information on how 3E Accounting helps in Company incorporation. Furthermore, they have an online incorporation form where you need to provide information like the company’s proposed name, paid-up capital, and many more, or else you can send the information to firstname.lastname@example.org. You need to submit your information and make the necessary payment. 3E Accounting can then register your company in a day or two.
Comparison of Economic Indicators, Opportunities, Government Assistance for Setting Up a Business in Singapore With Other Countries
Singapore is the world’s freest economy in the 2020 index, with an economic freedom score of 89.4. In Asia Pacific countries, Singapore is ranked number one. Singapore has one of the world’s highest per capita income and marked GDP growth rate. The GDP of Singapore is 372.1 billion USD as of 2019. The per capita income of Singapore is 92,270 PPP dollars. In contrast, the per capita income of Hong Kong is 65,730 PPP dollars as of 2019.
Courier services, freelancing, agriculture, financial services, electronics are the business opportunities in Singapore that can flourish in a short time.
The government provides grants to startups and small to medium-sized businesses in Singapore to overcome hurdles during their growth. Some examples of grants are ACE startups, Early-stage venture funding, productivity and innovation credit, comCare enterprise fund, and many more. Whereas in other countries, there are no such grants and funding from the government. The businessman has to do it on their own.
It’s fairly easy to set up a business in Singapore than in other countries. The city-state’s free economy, easy company incorporation, low corporate tax rates, minimal regulatory requirement, availability of skilled manpower are the main reasons why it is the best place for company incorporation. Furthermore, you don’t necessarily need to travel to Singapore to start a company. Click on this link to find the best hotels in Singapore.